The connection between customer experience and value
5 steps for tying customer experience to brand value
The key indicator of CX success
There are certain brands that all consumers hold up as succeeding in delivering a seamless customer experience. But whatever the brand, the reason for this admiration is always the same — being able to make their customers feel valued and understood. Ultimately, even when the product on offer is essentially a commodity, it’s this capability that strengthens their position within their business sector.
The brands that boast greater customer loyalty and advocacy do so because they understand the root cause of customer attrition (and know how to minimize it). The result? A lower cost to serve. All this feeds directly into their bottom line.
Understanding your customers is key to making them feel seen
Brands that can rightfully lay claim to being CX leaders know who their customers are. The experiences they create, maintain and optimize are carefully focused on their target audience. Rather than casting a wide net, they have moved beyond simple customer segmentation and have built up comprehensive customer archetypes. These personas drive everything from marketing campaigns and their underlying messages to honing customer journeys and the depth and breadth of support provided along and beyond the path to purchase.
of global customers would stop doing business with a brand after a single poor CX3
3 Foundever, "CX Landscape 2023: Evolution or revolution?". foundever.com.
5 steps for tying customer experience to brand value
1. Identify how to unlock this value
Segment the customer base and create personas based on the desired outcome. For instance, if the goal is increasing Net Promoter Score (NPS), identify customer types who are on the cusp of moving from detraction to neutrality. If the ultimate aim is to reduce churn, single out the actions and behaviors of customers who have recently severed ties with the organization.
2. Decide what constitutes value
Identify an aspect of CX to improve what is relative to the desired outcome, such as first contact resolution (FCR) or customer satisfaction (CSAT) scores. Look for elements where a correction or optimization could result in unlocking the greatest potential value.
3. Analyze historical data
Are there relationships between historical customer interactions or specific touchpoints and the customer cohorts the organization is attempting to engage? Have some channels performed better than others when customers are attempting to achieve the same objective? Support and test the validity of these findings by reviewing existing survey results, such as Voice of the Customer (VOC) programs.
4. Take action
Whether it is removing an individual touchpoint on the customer journey, improving agent training or updating content within a self-service portal or your employee-facing knowledgebase, make the necessary improvements to the elements of the customer experience identified as failing to deliver.
5. Monitor the metrics that matter
A change to how customer experience is delivered cannot be considered a success unless those changes can be accurately tracked and monitored over time. An upward tick in CSAT or NPS scores or positive feedback in customer surveys, and comparing that data to recurring revenues, will highlight if an organization has achieved its desired outcome.